Final call to Furlough – Scheme closes Wednesday 10 June 2020

From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time. This is a month earlier than previously announced to help support employers to bring people back to work. Individual firms will decide the hours and shift patterns their employees will work on their return, so that they can decide on the best approach for them – and will be responsible for paying their wages while in work.

From 1 August 2020, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. That means that for June and July 2020 the government will continue to pay 80% of people’s total employment costs. In the following months, businesses will be asked to contribute an increasing share, but crucially individuals will continue to receive that 80% of salary covering the time they are unable to work.

The scheme updates mean that the following will apply for the period people are furloughed:

  • June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
  • August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions.
  • September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
  • October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. 

IMPORTANT DATES TO NOTE:

To enable the introduction of part time furloughing, and support those already furloughed back to work, claims from July onwards will be restricted to employers currently using the scheme and previously furloughed employees. The scheme will close to new entrants on 30 June 2020, and to be eligible you must have furloughed your staff no later than 10 June 2020 (which will give the minimum furlough period to be eligible.)

If you have not made a claim to furlough your employees, you must notify us confirming the staff involved and the dates they became furloughed on Wednesday 10 June 2020 by emailing payroll@enterpriseaccountancy.co.uk or by calling the payroll team on 01302 752700.

There are strict cut off dates and criteria around this, so don’t delay and miss out.

DON’T FORGET

As you and your staff are able to return to work keep payroll informed so we can ensure that everyone is paid correctly and the correct furlough claim is made.